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Fuel poverty action plan unveiled Fuel poverty action plan unveiled
(19 minutes later)
Data on people with low incomes could be shared with energy companies to help people pay their fuel bills.Data on people with low incomes could be shared with energy companies to help people pay their fuel bills.
The government wants to share details so extra cash from suppliers, as well as existing grants, can be better targeted at the elderly and vulnerable.The government wants to share details so extra cash from suppliers, as well as existing grants, can be better targeted at the elderly and vulnerable.
Regulator Ofgem has announced measures it hopes will help alleviate the fuel poverty of those on low incomes. The initiative is part of a package of measures that energy regulator Ofgem hopes will alleviate fuel poverty.
But campaigners say the plans do not go far enough, and that poorer families will continue to face a fuel crisis.But campaigners say the plans do not go far enough, and that poorer families will continue to face a fuel crisis.
Steep risesSteep rises
The government estimates 2.5 million households are in fuel poverty - defined as when more than 10% of household income is spent on fuel bills - but watchdog Energywatch says the figure is more than four million.The government estimates 2.5 million households are in fuel poverty - defined as when more than 10% of household income is spent on fuel bills - but watchdog Energywatch says the figure is more than four million.
Concern for those on low incomes is growing since energy suppliers announced steep rises in the price of gas and electricity. All the major suppliers announced double-digit increases in early 2008, and more rises are expected by the end of the year.Concern for those on low incomes is growing since energy suppliers announced steep rises in the price of gas and electricity. All the major suppliers announced double-digit increases in early 2008, and more rises are expected by the end of the year.
The new fuel poverty measures announced today won't fix the problem - people will still be left out in the cold Ed Matthew, Friends of the Earth The plans at a glanceThe new fuel poverty measures announced today won't fix the problem - people will still be left out in the cold Ed Matthew, Friends of the Earth The plans at a glance
Most of the energy companies have so-called "social tariffs", and ministers are proposing that data identifying poorer families could be shared with the companies to ensure they pay the cheaper rates.Most of the energy companies have so-called "social tariffs", and ministers are proposing that data identifying poorer families could be shared with the companies to ensure they pay the cheaper rates.
This could see information about who is on certain benefits shared with the suppliers, although new legislation would be needed to do this.This could see information about who is on certain benefits shared with the suppliers, although new legislation would be needed to do this.
Age Concern director general Gordon Lishman said that the sharing of data was "controversial, but justified".Age Concern director general Gordon Lishman said that the sharing of data was "controversial, but justified".
He added: "We feel strongly that the severe pressure of rapidly rising energy prices justifies this kind of action, providing the data is handled by a trusted third party and people are fully informed about the scheme and given the option to opt out."He added: "We feel strongly that the severe pressure of rapidly rising energy prices justifies this kind of action, providing the data is handled by a trusted third party and people are fully informed about the scheme and given the option to opt out."
Radical measuresRadical measures
The charity estimates that 250,000 pensioners were pushed into fuel poverty by price rises earlier this year and has called for "radical new measures".The charity estimates that 250,000 pensioners were pushed into fuel poverty by price rises earlier this year and has called for "radical new measures".
Jane Senior borrowed from friends and family to cover debtJane Senior borrowed from friends and family to cover debt
An extra £3m is also being offered to encourage householders who want to generate their own power through heat pumps. In addition, £3m in existing funding for general energy efficiency schemes will be set aside to help low income families wanting to generate their own power through heat pumps.
Ministers also want existing government programmes which help with energy efficiency to make sure people are aware of the help that is on offer.Ministers also want existing government programmes which help with energy efficiency to make sure people are aware of the help that is on offer.
The announcements follow an agreement last month which should see the energy companies putting an extra £225m towards tackling fuel poverty over the next three years.The announcements follow an agreement last month which should see the energy companies putting an extra £225m towards tackling fuel poverty over the next three years.
In an annual household bill, the amount paid by energy suppliers which is then earmarked for energy efficiency schemes increased from £18 to £38 in April.
Energy minister Malcolm Wicks said it was important to provide "sustainable solutions" for the elderly, disabled people, and young families at risk from fuel poverty.Energy minister Malcolm Wicks said it was important to provide "sustainable solutions" for the elderly, disabled people, and young families at risk from fuel poverty.
He also admitted to the BBC's Today programme that the prime minister's announcement on developing new oil fields in the North Sea would have no impact on current fuel prices. He also admitted that the prime minister's announcement on developing new oil fields in the North Sea would have no impact on current fuel prices.
Fuel crisisFuel crisis
But the measures have not satisfied some charities and campaigners for fuel efficiency.But the measures have not satisfied some charities and campaigners for fuel efficiency.
The National Housing Federation called for pre-payment meter charges - typically more than £100 higher than the average annual bill paid by direct debit - to be brought into line with standard rates.The National Housing Federation called for pre-payment meter charges - typically more than £100 higher than the average annual bill paid by direct debit - to be brought into line with standard rates.
Kate Jopling, of Help the Aged, said: "While it is welcome news that the government is moving in the right direction on fuel poverty, this initiative does not go nearly far enough to deal with the looming fuel poverty crisis."Kate Jopling, of Help the Aged, said: "While it is welcome news that the government is moving in the right direction on fuel poverty, this initiative does not go nearly far enough to deal with the looming fuel poverty crisis."
Ed Matthew of Friends of the Earth said: "The new fuel poverty measures announced today won't fix the problem - people will still be left out in the cold. HAVE YOUR SAYThose who are on higher incomes should not be subsidising those on lower incomes on everything.S, The CitySend us your commentsEd Matthew of Friends of the Earth said: "The new fuel poverty measures announced today won't fix the problem - people will still be left out in the cold. HAVE YOUR SAYThose who are on higher incomes should not be subsidising those on lower incomes on everything.S, The CitySend us your comments
"The only way to warm up our four million fuel-poor homes is to super-insulate them and help them produce their own energy. ""The only way to warm up our four million fuel-poor homes is to super-insulate them and help them produce their own energy. "
Chancellor Alistair Darling told BBC Radio Scotland that he disagreed with campaigners' criticism that the plan was simply reshuffling old ideas. Chancellor Alistair Darling told the BBC that he disagreed with campaigners' criticism that the plan was simply reshuffling old ideas.
"What we have done is that we've reached an agreement with the power companies to increase the amount of money they spend in helping people get on to lower tariffs, helping people insulate their homes," he said."What we have done is that we've reached an agreement with the power companies to increase the amount of money they spend in helping people get on to lower tariffs, helping people insulate their homes," he said.
"There is an obligation now on all energy companies to help their customers cut their fuel bills by insulation and other measures as well.""There is an obligation now on all energy companies to help their customers cut their fuel bills by insulation and other measures as well."
Liberal Democrat leader Nick Clegg said energy companies had a £9bn windfall profit from the Emissions Trading Scheme.
"The government should simply insist that this massive subsidy enjoyed by the energy companies should be used to help the most vulnerable families with their fuel bills," he said.